abstract
Analysis of Financial Statements will explain all facets about financial statements。 It overthrow a traditional legend, which it needs complex and abstruse process to understand and analysis of the statements, and only those financial experts who have senior management degree can handle those。
  
Any enterprise always face opportunity, crisis and trap in the competitions。 In order to avoid those in time through financial data and information, we should learn to analysis the three main reports which are balance sheet, income statement, statement of cash flow, and understand the purpose of the user。
   Those will make us understand the essence of financial statements and reflect the truth on the back of the numbers。
The analysis is decided by the purpose of the users。
   Although there are some commonness on the usage, they still have special environment and purpose。 To master the analysis of the financial statements, we must understand the user’s purpose。
   In this article, the financial statement of year 2004-2005 of Neptunus Bioengineering provided on the China's Securities Regulatory Commission website is taken as an example。
   The ratio analysis and the comparison analysis are adopted。  In order to judge the financial condition and the business result, the repayment capability, earning capability, operation capability and development capability are analyzed。
   
Keywords: repayment capability, earning capability, operation capability, Dupont Analysis 
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